Can you cancel debt review? The short answer is no.
Once you have applied for debt review, a Debt Counsellor will capture your application on the National Credit Regulator’s (NCR) system and notify the relevant credit providers of your application.
From this point onwards, you cannot simply cancel your debt review application by requesting that your Debt Counsellor withdraw it.
Even if your Debt Counsellor receives a request to cancel the application, they cannot simply remove the debt review status from the NCR system on the basis of that request. This is because such a cancellation is inconsistent with the Debt Review Withdrawal Guidelines issued by the National Credit Regulator.
Once your application has been captured, there are a number of steps that must take place to determine whether you will ultimately be placed under debt review.
1. The Debt Counsellor must determine whether you are over-indebted
Your Debt Counsellor must assess your financial circumstances and determine whether you are over-indebted.
If your Debt Counsellor determines that you are over-indebted, the debt review process will proceed and you will be formally placed under debt review.
If your Debt Counsellor determines that you are not over-indebted, they will issue a Form 17.2 Reject, and the debt review process will come to an end.
2. If you are found to be over-indebted, there are specific ways to be removed from debt review
If your Debt Counsellor has determined that you are over-indebted, you cannot simply cancel the debt review by sending an email or making a telephone request.
Generally, removal from debt review may occur through:
A court order declaring you no longer to be over-indebted and ordering the removal of the debt review status; or
A Clearance Certificate, provided that the requirements for issuing the certificate have been met. This generally requires that all the debts listed under debt review, other than a mortgage bond, have been paid in full, together with the necessary proof of settlement.
It is important to understand that sending your Debt Counsellor a cancellation email, or requesting cancellation telephonically, will not by itself cancel the debt review or remove the debt review status from your credit records.
A Debt Counsellor may suspend or terminate their services in certain circumstances, but this does not, by itself, remove the debt review status from your credit profile.
If you have obtained a court order declaring you no longer to be over-indebted, you can provide the order to your Debt Counsellor and request that the relevant records be updated accordingly.
Alternatively, if you have settled the debts that are subject to debt review, you can provide the Debt Counsellor with the necessary paid-up or settlement letters and request the issuing of a Clearance Certificate, provided that all the applicable requirements have been satisfied.
How National Debt Helpline Can Assist
In many cases, consumers do not have the necessary documentation to obtain a Clearance Certificate, or they may not have the legal knowledge and resources required to pursue a court application for the removal of their debt review status.
This is where National Debt Helpline can assist.
We will professionally assess your circumstances and explain the available options to you. Where appropriate, we can assist you with the process of obtaining a Debt Review Clearance Certificate or with pursuing a court application for the removal of your debt review status.
If you believe that you may qualify to be removed from debt review, contact National Debt Helpline today to discuss your circumstances and understand your available options.